Federal Housing Administration Commissioner Brian Montgomery said that the agency will be finalizing new condo policies—long-awaited by the real estate industry–that could lift some restrictions and streamline processes to give a boost to the condo sector. Montgomery said that condos represent an opportunity to help boost affordable housing for first-time homeowners and seniors.
“We anticipate that the updated regulations will be more flexible, less prescriptive, and more reflective of the current market than existing provisions,” Montgomery told a crowd during last week’s 2019 REALTORS® Legislative Meetings & Trade Expo in Washington, D.C. “It may also include single-unit approvals for loans that meet HUD standards for unapproved projects, allowing HUD to set the specific percentage.”
A final rule is currently under review by the Office of Management and Budget.
The National Association of REALTORS® has supported revisions to the FHA’s current condo policies, including allowing owner-occupancy level determination on a case-by-case basis, granting up to 45% commercial space without documentation, and including a five-year approval period for project certification.
Visit REALTOR® Magazine for more information about the rule from Commissioner Montgomery.